[SMM Steel Morning Meeting Summary] From a fundamental perspective, on the supply side, according to the SMM survey, due to poor profits at EAF steel mills and weakening demand, some electric furnace plants in south China adjusted their operating hours downward. Some electric furnace plants in central and south-west China also conducted temporary maintenance due to raw material procurement issues. This week, the national electric furnace operating rate dropped to 36.52%, down 1.82% WoW. On the demand side, the market enthusiasm for construction materials demand in May waned, and continuous rainfall during the flooding season in south China disrupted construction schedules. Overall, the supply-demand imbalance in the fundamentals is not yet prominent. It will take some time for positive news such as RRR cuts, reductions in housing provident fund loan interest rates, and the advancement of Sino-US peace talks at the macro level to be implemented. The market sentiment is one of wait-and-see, and merchants are operating more cautiously. It is expected that construction material prices may fluctuate in the short term, and subsequent attention should be paid to any changes in the macro direction.

The People's Bank of China will strengthen macroeconomic regulation and control, and introduce a package of monetary policy measures, mainly consisting of three categories and ten policies.

[SMM Rebar Daily Review: Weak Balance of Supply and Demand Coupled with Pending Favourable Factors, Construction Steel to Maintain Wait-and-See Stance in Short Term] Today, rebar futures moved downwards after a higher opening, closing at 3,098 yuan/mt, up 0.19% from the previous trading day. In terms of spot prices, stimulated by favourable macro front news, spot prices in some regions increased by 10-20 yuan/mt, with overall trading performance being average.

According to the SMM survey, as of May 7, the operating rate of blast furnaces at 242 steel mills surveyed by SMM was 88.96%, up 0.07 percentage point MoM. The capacity utilisation rate of blast furnaces was 91.10%, up 0.16 percentage point MoM. The daily average pig iron production of the sampled steel mills was 2.4579 million mt, up 4,400 mt MoM.

[SMM Survey: Divergence in Operating Status of Rolling Lines in Central China, Significant Inventory Accumulation - What's Next?] During the survey period (April 29 - May 5), the operating rate of rebar rolling lines at steel mills in the Central China region declined, while the capacity utilisation rate rose slightly; the capacity utilisation rate of wire rod rolling lines increased.

[SMM Weekly Maintenance Statistics] According to SMM statistics, for the week (May 3 to May 9), the impact of blast furnace maintenance on pig iron production was...

Preview: The People's Bank of China, the China Securities Regulatory Commission, and other departments will make announcements at 9 a.m. on the 7th, introducing the relevant situation of "a package of financial policies to support market stability and stabilize expectations.

[SMM Steel Morning Meeting Summary] From a fundamental perspective, on the supply side, blast furnace steel mills still have profit margins in producing construction materials, and their willingness to produce remains moderate, maintaining normal production levels. EAF steel mills are facing greater difficulties in collecting scrap, with some electric furnace plants halting operations. Overall, the supply pressure for construction materials is not significant. On the demand side, during the Labour Day holiday, cargo transportation was hindered, and construction activities in some regions were temporarily suspended. This was followed by rain and flood conditions in south China, further impeding construction progress at construction sites. Overall demand performance has been average. During the holiday, the pace of downstream purchases slowed down, and inventory levels in some regions increased slightly. Overall, the fundamentals indicate a situation of weak supply and demand, with slightly insufficient market confidence and cautious operations. It is expected that steel prices will remain in the doldrums in the short term. Going forward, it is necessary to closely monitor changes in the macroeconomic environment and downstream demand.

[SMM Rebar Daily Review: Weak Supply and Demand Show Signs of Decline, Prices Remain in the Doldrums] Today, rebar futures fluctuated downward, closing at 3,077, down 0.61% from the previous trading day. In terms of spot prices, spot cargo quotes in various regions were largely stable in the morning, with a strong wait-and-see sentiment in the market. In the afternoon, rebar futures fluctuated at lows, with prices in some regions falling by approximately 10-30 yuan/mt. Overall trading performance throughout the day was generally average.

US non-farm payrolls increased by 177,000 in April, compared to an estimated increase of 138,000 and a prior increase of 228,000. The March data was revised downward. The unemployment rate remained unchanged at 4.2%. The country will continue to increase central fiscal funding to support local and industry efforts in constructing a number of foundational, public-interest, and long-term data infrastructure projects. It will effectively utilize ultra-long-term special treasury bond funds to accelerate the construction of the national data infrastructure architecture. Looking ahead to the "15th Five-Year Plan" period, it will expedite the formulation of a national data infrastructure plan.